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tv   In the Loop With Betty Liu  Bloomberg  December 15, 2014 8:00am-10:01am EST

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tweaks in the market so far this year. looking to tackle the growing let in the democratic party for everything in banking regulation than the market. lambasting the white house again. plus, another uber has emerged. is calling itself the uber of private jets. why they will succeed where others, including a competitor, ,ailed just about a year ago serving the 1%. first, here's a look at our top stories this morning. a gunman continues to hold hostages, displaying a flag with arabic writing on it.
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no direct ties to the islamic state. so far, it is not known if they escaped or were released. as many as 15 others may still be inside. hostages are forced to hold up his white flag. no word on what they are demanding, if anything. >> we do not yet know the motivation of the perpetrator. we do not know whether this is politically motivated. obviously, there are some where itns that -- could be. click through the highs and the decade. minister the prime calling elections. that that has paid off. more than two thirds of parliament, he says it is an endorsement of economic policy.
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only halfway there. >> i have noticed the changes. the election result was the voice of the people saying this is our mission to repeat such change and we feel we can do that. >> since he began his program two years ago, the index is up more than 70%. and it is the biggest leveraged deal of the year in the u.s. bought by a group of a british firm partners. petsmart is hurt by growing competition from amazon and other retailers. selling a power transmission business. price tag, $1.4 billion. the unit no longer sits in with his long-term strategy. the busiest mailing day of the year. the postal service says it will million today.
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it will be the busiest day in history. packages through delivery. failing to deliver thousands of pages in time last year. that was a gain of many people's existence for christmas. hours after five hostages fled the chocolate café in downtown sydney, police will not say how are left in the building or disclose the identity of the government. >> our plan, our only goal tonight and for as long as this takes, is to get those people currently caught in that building out of there safely. >> i want to go live to sydney with juliett, reporting from our bloomberg bureau.
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what have you learned so far in ?he past hour >> the last time we heard from the commissioner was a couple of hours ago now. now entering into its working power. it is midnight here in sydney. ,part from the police presence most of the city is how it is faring monday. and have goneleep home. people havew that either escaped or are being released. police have not confirmed whether or not they're being released, but it looks like they ran out the door. have not had enough this is a couple of hours ago.
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a lot went down about three hours ago. >> incredible footage running out of the café. what do we know about the government? understood the government is known to the police -- by the police. unconfirmed group boards that he was out on bail. police are staying tightlipped about this as they try to negotiate with the government. they are now negotiating directly with him and not to a third arty. these reports are still very much unconfirmed because police are trying to keep everything close to their chest, as you can imagine. in september, we did have a terrorist alert. australia, to its highest level in a decade following anti-terror riots and there was
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a plot uncovered to behead under the flag. all of these things tie into the fact that this is an intense situation. >> do we know who the hostages are and how many? what is going on exactly inside the café? >> sadly, again, quite sketchy. we know five people escaped -- ier and two look like the other three are workers because they were wearing that uniform. was told earlier that normally, they have got about 10 workers on that shift. we would imagine there is another seven workers, and it is a very popular café. theorders going through 49:30 this morning. quite a lot of traffic coming
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through and quite a lot of people sitting down to enjoy their coffee and hot chocolate as well. people as well. us,hank you for joining reporting from sydney australia. president obama monitoring the .ituation peter, we do not know if he has any official ties to the islamic state. theo not even know what black flag with arabic writing means. what is the white house saying about this? the president was briefed by his chief counterterrorism official, his advisor there last night. we learned more from the state department at this point because right there is the u.s. consulate.
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we know from state department chiefals that all personnel have been accounted for. big concern for the australians. a close ally in the fight of -- against terrorism around the world. but for the most part, the message we're getting from the white house administration is we are watching this closely and whatever help they >> another focus in washington this morning is obamacare. today's the big deadline if you want to sign up for coverage, you better sign up today. are we seeing any problems with this? >> we are hearing from the health and human services department that the wait times for the call center is a little longer than would be expected normally. but the website is functioning properly, as it has basically throughout the entire and
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romance -- enrollment period. 1.4 million people had enrolled through december 5. 48 percent of those were new enrollees, people who had not signed up last year. 52% of people renewing their plans. that is important because the government is really trying to reach out to people last year to make clear to them that you need to go look again. more than seven out of 10 people could find cheaper coverage than they could last year. if they do not look, they could be auto and rolled in their own programs and could find premiums next year. >> what us to we know about total enrollment going to 2015? do they say that this was a success? >> this time around, the
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administration picked a figure for 2016 and they hope to have 9.4 million people enrolled in obamacare by the end of this in romans period. they think it will be easy for them to reach that mark. werellion people projected. this andation was at other outside groups and said that there is no reason why they can't get past that. arguably would be functioning at a higher level than last year, bringing more people just as republicans take control and pledged to dismantle this as best they can. >> thank you so much. let's stay with politics. a new headache from the president. he is getting a lot more pushback on a variety of issues from the banking legislation to tax a version issue.
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those are just the latest troubles for the car service. ♪
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>> we in the media often talk about the white house's relationship with the gop and the infighting within the party. what about the president's relationship with his own party. the democrats? has laid bare a over in theften is past six years. phil mattingly joins us now from washington. passed and bill just lays some disagreements within the democratic party. >> that is right. interesting dynamic that will start in full in january when republicans take control in the
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senate is if the president wants to get everything done, he has to deal with republicans. a brief look into what that might look like with the spending process of these two provisions that are unpalatable by democrats. on derivatives, and campaign finance. the white house's in general agreement, but there is recognition that if they want to get something back, they need to give something to republicans. it gives them the opportunity to fire back on some of the key things president obama might get done going forward. >> i want to bring in our guest host for this hour. a big media investor in intermedia partners. is this going to be a split and a party that will only get worse
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in 2016? >> i think it is pretty darn bad right now. dissed his own party and frankly congress for six years. he is now in the minority sodas not have his caucus behind him. he did not have it behind him when he was in the majority. he has a sensitivity to the three branches of government, particularly congress. his own way.gone right after november 4, david, harry reid's chief of staff, really laid out the discontent within the senate democratic caucus about the lack of image -- integration between the president's agenda and their personalities, etc. to lead thee tries
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democrats as a minority, he did not we them well as a majority. >> let me get you back in here. the question is whether the dissent he sees in his own party will be as bad as the dissent we johnseen within the gop to boehner and other folks? >> it is a different dynamic but i think there are real problems. relations between congress and leowhite house, leone up -- nails it. they were to try to make it better, but even last week, nancy pelosi felt cut out of the process. a large driving force to really in thet back in the face entire process. the democrats are in the minority in both chambers of congress. the white house wants to find moderate democrats and pair them .ith republicans
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the interesting thing will be whether or not democrats can stay united like republicans did . that could cause major problems for the white house. like it was when democrats controlled the senate, 60 votes will be needed to go forward on anything. >> specifically, where could we see the biggest disagreement? ,> the biggest one right now they think republicans can actually move on the trade agreements and the asia-pacific region. these are key a -- key components. that will be a major problem. the other thing to keep in mind is how the white house will make deals. they have put changes on entitlement programs on the table. future changes to dodd-frank to make deals with republicans. those areas democrats have made that they willft
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not deal at all. collects it is a nightmare, at least in my opinion and the opinion of many progressives in the democratic party. ill-conceived agreement. i think phil is right that that will be a significant flash point. the other one will be any more erosion of dodd-frank. the president has no business to back up on dodd-frank. he just is not. we will talk later on your piece on inversions. but those two will be very antagonistic. >> a elizabeth warren has been the biggest foreign on the president's eastside on that issue. she is now being considered maybe a possible contender as well for 2016.
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>> i think she has been considered a contender since she won her senate election in 2012. a remarkable talent and she speaks for a very specific part of the party. also comes at a time when hillary clinton is looking more vulnerable. i do not think elizabeth warren will actually throw her hat in the ring. hillary has to get through iowa and new hampshire because everyone who runs has to get through. that will be fun and productive, you will see very creditable people debate in iowa. brian schweitzer, bernie sanders, and that will help define or not the hillary clinton candidacy. >> and the judo -- the gop lineup. one of them, ted cruz was saying he fell off his chair listening
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to the recent country music video produced by the hillary clinton super pac ear that's the way it. 2016 and this time, i am thinking god. .ut your boots on ♪ >> i literally thought i was watching an snl parody. no --redibly important, before november the fourth, democrats had a lock at about 235 electoral votes. the southeast, the mountain west, and parts of the southwest. that number has dropped to about 185. republicans have positioned themselves well. >> all right. stay with me. you are my guest host.
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thank you. we will be back in two minutes on "in the loop." ♪
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>> you watching "in the loop" live on bloomberg television. a look at our company news this hour. about to join those cracking down on amber. france's material ministry well -- concern about drivers .ualifications surveymonkey. according to wall street journal, surveymonkey is now valued at close to $2 billion. and the ceo of a restaurant chain is stepping down.
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the ceo bob evans has been there for eight years. fourth-quarter sales fell short of wall street estimates. his 26 minutes past the hour, which means bloomberg television is on the markets. >> time now for the future is in .ocus gold futures jumping 2.7% last week and all of this as a plunge in global equities erased some $2 trillion from the value of stocks. course reversing following 1%. at wheree with a look gold futures are headed at this point in the game and how you can make money is can half men
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can, i want to start with you. why is gold falling ahead of the fed meeting? >> gold is interesting. one said gold was a slamdunk and they were dead wrong. a loss of a lot of money. the reason is, while you have the barricade of the fed raising rates, the world always seems to have a lot of problems. you will see big buying out of india and china and russia. statistic, the price of gold and ruvell is up 17,000% here that is why they buy in these type of areas. it is the goal that has kept above water year to date. >> i'm curious. with that in mind, how would you trade gold right now? to comment that i
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do not agree with what was said here. i think gold is nothing more -- a one-year low was a reason spy, i think gold is a short-term short. i like to sell cold here. speak we i think we are short here and go back to the lows of 1130 at 1140, but i think from here, 1210 to 1180 is a great trade. about a $30 change in gold. >> 1207, a session low on the screen right now. you will be a buyer of gold right now.
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you will be a seller and you will look forward to is falling further to about 1180. you would be making a profit of close to 3000, give or take. ubs has a report this morning saying there is downsized treasure for gold, particularly when it comes to the quiddity. can you comment on liquidity? view of is a western the world a says there will be a problem with gold, precisely what we have been talking about. on the other hand, you have china increasing the liquidity where they can buy into the western markets for the first time. the give and take is making it .ifficult for a lot of traders
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>> interesting to watch where we are trading. did at 1206. and thank you. we are standing by right now for economic numbers. manufacturing is out. this data measures manufacturing and that new york region. hyman. >> an unexpected contraction because the estimate was to be a reason -- a reading of 12.4. coming in at negative six is much worse than estimated. i am standing and scanning through the elements within it. inventories were down. if you look at prices paid, a significant increase of prices paid.
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a positive reading for the prices paid. general business conditions we are talking about. in terms of market reaction, it is not seem to be a strong market reaction to the manufacturing report. >> thank you so much. a surprise number out here. julie hyman at the breaking news desk. the federal reserve open market committee. ony meet this week here wednesday, they will announce their thinking on the u.s. economy. will they drop this considerable time mileage interest rates? an economy already recovering and creating jobs. .his data puts a damper into it my guest host this hour is the managing partner of intermedia
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partners, and the former senior economic adviser to the president. i know you keep a strong -- you monitor the jobs market for the economy. is it as good as it looks? >> it is not. affirming, thee number was huge in november, but it was all service again, about 11,000 of that massive number was manufacturing very we still ofe an incredible egg nation wages. the part-time of necessity is one we should incredibly concerned about. 11 million men and women who cannot find the time and limit. there is strength in the services side because of credit losing, and we will always get that in this time of year. but manufacturing continues to .e soft and wages are very soft
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really unacceptable. >> if wages continue to be soft, business head right in moving toward a monetary policy? >> the fed has to be careful they do not create some more credit bubbles. when you have more than 90% of , lessorkforce in service than 10% in manufacturing, there is an inevitability to credit bubbles. we cannot all be in service to each other. we see it periodically. about every 7-8 years, we've booked the bubbles and they tend to burst unexpectedly. we need about 20% of our women and men making something. is, thatas the economy is a target that has to be in mind. one of the reasons i am really
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against the transpacific trade agreement is because i think it will further the pressure on our own manufacturing sector. >> what is interesting is mike bloomberg, a majority owner here at at bloomberg, a child graduating from high school may want to be more a plumber than harvard business school. >> mike bloomberg is both very sensitive. about half the population has no business going to college. that is a pejorative statement. iq.s a characterization of it is not a critical statement. it is a sensitive statement did we cannot build an economy in service to one another. you cannot be 317, 300 18 million people today with our
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diversity. every young person who wants to go to college and should has -- should have every opportunity to go. but we have so denigrated manual labor and manufacturing. the automaker. it right. not get germany gets it right and the other countries get it right. china surely gets it right. >> all right. stay with me, my guest host this hour. right here, we will talk with a billionaire investor. ♪
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>> burger king just closed its shipping toar -- canada on its inversion deal.
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a former big wake and president obama's kick for treasury under domestic finance. the nomination has caused a firestorm in washington with elizabeth warren, leaving the charge saying, the white house claims mr. weiss has -- is personally opposed to inversions. and he's the count against tax inversion? meanwhile, a just passed -- a win for a company who wanted to move theseas very joining me is president and ceo of international and. inversions. let me start with you. there was a slight win for companies in this and in no very
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they will move their headquarters overseas. what do you think it would be like for them in 2000 13 with congress? >> good morning and thank you for having me on. latest.ns are the what is critically important is that the political rhetoric over the burger king deal and others like it, and the potential for legislation and read -- as a response to it, have got the global community broadly concerned. my organization represents the u.s. subsidiaries of foreign michelin,like nestlé, and these companies are concerned they will be collateral damage. areign investments
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important to our economy. these are companies that have decided to invest outside their home market, in source investments and jobs to the beted states, and now might caught as collateral damage. they employ 5% of our workforce. get theirn americans paycheck each year from these companies. 6% of the economy. that is important. >> leo, do you care? >> i do. we have 151 million workers in america and even serrated by tax evasion. tax is decades long evasion. apple has certainly been, historically, one of the biggest offenders. ge falls into the category. they shift u.s. earnings overseas to transfer pricing and then they tried to invert. ms. macklemore, this is an
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insult to the middle-class. it really is. to reform the u.s. tax code on the corporate side, i am all for it. it is unfair. classes cannot be denied that we do have one of the highest corporate tax rates in the country. >> do not change to escape your responsibility as a u.s. it is and company. should chaseat you a low manufacturing wage, chase manufacturing rates, 5.8 million , out of one hundred 51 million in the workforce. we have a responsibility to this country, and senator warren is whoight that the young man wants to the and undersecretary or a deputy secretary, who has made his career on escape the
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u.s. taxation for clients is an insult. want to respond? less absolutely. policymakers have a choice there they can decide to embrace put -- the global economy or penalize those who want to compete in it. my focus is on the collateral damage. we live in a -- in a dynamic world. i do not think we want to risk damaging competitiveness for foreign investment. and out side -- and outside an outside impact on the economy. if we have a political version, we will not have an all-out effort. it takes the oxygen out of the room, absolutely on our corporate tax rate. in 1989, the average rate was 35%. it is now 24%. remains over 10% higher
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than that average. we cannot compete in that way. if companies have to question whether the u.s. will provide an environment that wants to be competitive for their investment, it will be competitive for the economy and all related jobs in source by those companies. >> i believe the u.s. corporate tax rate is too high and i do not disagree with your statement here today, burger king ran away to canada to avoid paying u.s. taxes. >> come on. canada is hardly a tax haven. that any country today with a lower rate than the haven. deemed a tax canada is not a tax haven. i do not think very many people claim that it was. >> doesn't have a lower tax rate? it is adoes not mean tax haven. >> does it? >> yes but --
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>> did burger king -- >> those based abroad pay taxes in the u.s. at exactly the same rate. the point at issue here is taxes paid on worldwide earnings. frankly, even in the new company, if it were headquartered in the u.s., very unlikely those earnings would be repatriated back to the u.s. acres of our tax system. we need to look at policies based on global realities and not some sort of wish that would bring the income back here regardless what our tax policy is. >> enough said. havenk american companies responsibilities that are ethical and economic to the wealth of this company. corporate tax rate, i am not and will never be in favor -- >> you think we should just than these companies from doing these deals? >> these deals, and using the
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transfer pricing to accumulate in apple's case nearly $1 trillion of taxable income. international taxation is a very complex issue. when you try to go after one set of companies, very often you will have collateral damage and the collateral damage here that is at stake employs 5.8 million american companies. we need to decide to be competitive and it is almost ironically administration is getting tripped up based on an issue they tried to politicize. it is really good for washington broadly speaking to have more people who understand the realities of a global economy. we cannot keep pretending they do not exist. >> let's leave it here. thank you so much, nancy. leo hindery. ♪
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>> that is the latest netflix original series on friday with it -- pretty poor reviews. time magazine is calling it ludicrous, and variety noting it is full of b-movie clichés. big on this 13th century series him a $9 million in hopes it will get a debt that it will appeal to a global audience. is this series the latest sign of trouble for netflix? back with me is the managing partners. intermedia i do not know if you got the chance to see marco polo? >> i read reviews. see it now.ill not what is fascinating to me is why organizations that become very sick that's distributing content
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suddenly feel that those talents make them capable of producing talent. and thatouse of cards is a great hit. "orange is the new black." for every success, there are at least two failures in the production. it is a dangerous step, when netflix announces it wants to do a lot of production. in -- >> why not. he says, why do i need to by ?thers content why would you not make that decision? >> it is a numbers game. what he is able to do, if his enough, hetays large
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is able to buy content across all suppliers and get all the goods tough, the offensively. when he gets down to making it for himself, the road narrows very quickly. dreamworks, for all the acclaim that went to its founders thomas it made 65 movies, 15 made money, and 50 did not. these are incredibly capable people whose careers have been in the making of product. proving himself a very capable distributor, not necessarily a maker. a movie producer. >> great to see you this morning. >> you as well. happy holidays. >> happy holidays. my guest host this hour. still to come, a battle over prices. retailers are seeing just how low they can go. we will be back. ♪
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>> it is 56 minutes past the hour. bloomberg television is on the markets. equity futures after the huge selloff on friday, one of the worst weeks in two years in the markets. the dow fell 300 points. half of a about percent. traveling finds on the economy. we are on the markets again in 30 minutes. much more ahead, including the calls itself the over of private jets. we will hear from the ceo of this competition. you're watching "in the loop" live on bloomberg television. ♪
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>> welcome back. 30 minutes away from the opening bell. we seem to be headed higher. the dow jones industrial average lost more than three point percent, the worst performance in three years. futures look to be rebounding. we get some breaking news right now on the hostage situation in sydney. with now identified who the gunman is who is holding hostages in a café in downtown sydney. julie is joining us with more. what do we know? one of the newspapers here, as we are going to bed with
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overnight traditions. islamic -- he has been named as the man still behind this. known tois well police. he is allegedly on bail, charged with accessory to the murder of his ex-wife last year. inefugee who arrived australia in 1996 and also has written to the family of deceased australian soldiers in afghanistan and iraq. all of this is coming out in the last five minutes or so. it is certainly still very much breaking news. of thecription 49-year-old fits the image we have seen of a middle-aged man standing in a café, the pictures
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we have seen. been proof of this gunman. >> doesn't seem more like this is a lone gunman acting out on motives,ith his own rather than a suspected terrorist with formal ties to islamic state? >> we would certainly hope so. the police commissioner indicated about four hours ago or so now that they were not concerned that there were other operations going on in sydney and that they really were just focusing on this. that suggested the gunman was acting alone. that heheard reports has asked for a flag so perhaps he is trying to align himself with isis or isil. it does indicate he is just one man that has a grievance,
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clearly, with the us chilean government. quite poisonous to the families of australians ian killed in combat and of course, who also has a violent history. there are also allegations he has about 50 sexual assault charges related to incidences that happened, and of course, murder of his ex-wife. there are indications that that murder -- a lot of new things are still coming to light, but it looks like he is acting alone but in -- big scheme of things, >> thank you so much there in sydney australia, monitoring that situation. she said one of the local papers identified the man who is holding still hostages in that café in sydney.
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on to other stories, we're 30 minutes away from the start of trade here. matt miller and olivia sterns joining me this morning. let's start with something later at number 10. last week's snafu, as we heard, the daughter of the chairman turning back the airplane, sending off the flight attendant who served her macadamia nuts apparently, macadamia nuts are being bought up in korea after an accident. she over the weekend resigned, saying she was foolish for that act. >> she has an executive role. her father is not only the chairman, but she got a sweet and cushy job. was taking her job various -- very seriously.
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i don't get the connection other than that, yes, people have a sense of humor. macadamia not and -- macadamia nuts. they were not popular. people in south korea did not actually them so this is new for them. oncehey are delicious, so you have one, you know you cannot stop that one. that is what happens. number nine, a new wolf on wall street and this is just a baby boy only in high school. made $72 million trading stocks on his lunch break. and his friends hope to start a hedge fund in june after he turns 18 and can get his broker license. amazing. >> their time to model themselves after a group with a coat brothers. in the find these guys
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eatingof lunch break caviar and outages. >> personally, i do not buy it. was 1 -- in one of the new york tabloids and i just do not believe the kit makes $72 million yet. that is all there is to it. >> math. he started off at 80 million dollars. >> i think these kids are having a lot of fun doing with their doing and i think it is a great story. he apparently already bought a bmw. they do not really site where he got the facts. classes not april 1 yet, so i do not know. number eight, of a monkey now to $2 billione asterisk $250 million according to the journal. the new cash injection is to help fuel the online russian air
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services and fashion into corporate software. mr. sheryl sandberg. marriedact that he is to sheryl sandberg alone is the $2 million valuation. that does not surprise me at all. >> he probably make as much money getting divorced. >> have you been on surveymonkey? >> he s. useful. actually very what people think about products and services. bryce harper for the eight andites to record my data figure out stuff about me. i do not want to -- >> he went into that company a few years ago and grew it from seven to 250 employees. >> it is very impressive. >> number seven, although
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looking for a revival in the .s. the company that the company plans to skip many shows and sharpen the online focus. setting the starting price at 166,000, $700. what a beauty. transfers of all, that is calculated from the euro price. typically cars are priced in dollars here. 135 thousand dollars. to clarify this for everyone it is like the mindful. it is not really a rolls-royce bentley, it is basically just a firm line, was i think the company will be finding out.
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>> the volvo story is interesting and they want to focus on online now. you heard last week talking about beefing up on my presence. >> everybody is making a big deal -- out of the new volvos. turbocharged and super charged. that is awesome. it is weird they will go to them. i have been tripled belled. uber is in sydney following the situation in the country. the company raised prices during the hostage situation and said on twitter, we are all concerned and events increasing encourage more drivers to come online and pick up passengers in the area. reversed course and
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decided to give patients a ride for free. .ree for all riders what were they thinking? >> then, as the police wanted out, they were basically encouraging drivers to come into the area and that is not mess is really a good in either area >> i still do not think everyone who graphs -- grasped what the is pointless to argue with people worried about price gouging. if you do not take it with certain rights, they will not show up. >> at a time of crisis like this, number 10 not sound tone .eaf >> it sounds tone deaf all the time and i do not see why now would be any different. --much more ahead here it ahead.
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where can you get the best deals this year? we will be back. ♪
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>> it is time for our deep dive. at number five, toy story. retail discounting getting more cutthroat than ever. amazon, whose prices are nearly five are sent below that of walmart, julie hyman has more. tracking, have been bloomberg intelligence has been tracking prices throughout the holiday season. so they are much cheaper? by cs. this is really a change. if you look through the holiday season, a bloomberg intelligence team of analysts do a weekly survey where they look at a basque -- a basket of items. they use a -- walmart as a benchmark.
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mid-november, they were pretty much neck and neck. all of the site and, last week arealmart online, it's toys this is also- really a standout. toys r us is a most expensive versus walmart. you have target, kmart, and amazon. when i say amazon is cheapest, it is x marketplace. this is the amazon course of not sellers. >> hang on. breaking news on the economy. out for the month of november. this is up by about 1.3%, the number we are getting. double what economists estimated for a gain of 7/10 of 1%. utilization.
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dad news earlier. in the meantime, back to you. this is fascinating here that amazon has changed in the last 12, 18 months. gettingactly are they more aggressive? >> video games is where a lot of it is happening. on a lot of item -- other items come moorman is cheaper. you can find other prices that are cheaper, but if you look at particular,rices in amazon and amazon x marketplace, walmart prices video -- walmart's video games are about 10% more expensive. where amazon has tried to take the leadership appears to be in that area.
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>> walmart is responding what way, or how are other retailers responding? >> -- that is not clear, but something as important as price is whether it is there, whether the retailer has it or not. bloomberg television look at the level of out of stocks at any particular time. target in the last week really picked up with this out of stock. the number of things out of stock online reached 60%. kmart, amazon, toys "r" us, walmart has the leadership in out of stock. to the retailking analyst over at bloomberg intelligence. if you are shopping, you need those tea does things to be cheapest, but you also have to have the item. i need to stock it. >> and they need to get it to you by the holidays. we do know that retailers were
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running a lot leaner than last year. that is because they really got caught. caught with too much merchandise and they had to discount very aggressively. they appear to have learned their lesson more this year. >> all right. thank you so much. we are back in two minutes with more. ♪
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>> welcome back. let's get back to bringing you the most important stories you need to know. number four, sony pictures entertainment asking news outlets, sending us the stocks airing its dirty laundry. hiredme lawyer has been
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and he sent these letters out pretty much in form saying that you are going to be committing, law, or doing the wrong by redistributing these e-mails. >> the thing everybody should check out his erin of the new york times saying, by airing e-mails of jen -- analyst -- angelina jolie -- >> they are not all damning. a lot of it is just gossip. i love it. outlet thatny news does this is moral treason. please. i guess the concern about the invasion of privacy, it has been invaded and is hilarious their >> it is out there. if it is out there and it is a news story, you report the news. >> i guess the point is we're helping them achieve what they want.
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>> it is either us or read it. lewis, an author out with another must-read. nobody under the age of 35 is allowed. number three on his list, women make all wall street trading decisions. >> he is pandering. >> number five, no firm shall be immortal or too big to fail. moral high horse. please. the only one that makes sense is five, which is that there should not be too big to fail firms here the rest of them are silly and i guess they are meant to be. >> a lot of studies prove that women take less risks. >> just making a point. >> wall street should focus on
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recruiting elderly, retired who have time on enhanced. >> you invest in those firms and i will invest in others. >> number two, a standby decision to not cut outlooks. this is according to the united energy minister. even if we hit 40? that is, -- possibly a bottom here. >> saudi arabia trying to price out the factors and see u.s. producers go out of business. reading something saying this is more competing with market share. want to keep their chinese customers and it is more those players they are worried about. >> it is fascinating and it will be interesting to see the ramifications. it is affecting us and nigeria and venezuela and russia, maybe
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one of the most important effects here. >> my take away this morning is with oil prices giving us a tax break, it allows the fed to continue to tighten. >> we will be back in a moment. ♪
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>> welcome back. i want to get back to bringing you the most important stories you need to know before the bell. matt miller and olivia sterns are joining me. we are looking for two 2015. we look back on some of the calls made. apple was one of the stocks that big money managers said tuesday away from. stayedk, if you have away from apple, you would have lost out on a 37% return in a market that has only given you single digits this year. i was one of the worst calls. question is worth what, $800 billion? broaderally and the
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benchmark have been driven by apple. >> you used to point out it was driven all the time by 10% of the nasdaq and any move in the nasdaq is driven by markets. know,e sense, you shunning apple did not make any sense, but people betting interest rates would rise really lost out. why would you bet against apple when all you are doing is trying to load up on apple products? >> nobody thought the tenure was going from 3% to 2%. every reason to believe interest rates would start to rise again. why would people continue to pile in the safety of u.s. debt? that, whichrong way is, why would you bet against apple? >> i wonder if apple will continue to be a big bet for 2015. apple watch?
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apple tv. apple everything. >> i want to bring in a chief investment global strategist at citibank. what is your big call for 2015? dollar strength, a strong flow of international money to the united states, dividing returns between oil producers and oil consumers, and in emerging markets it is a stronger shift towards age of -- towards asia. >> asia has not done very well, so what parts of asia? across asiahink petroleum deficits are the way the united states used to be, in the neighborhood of five percent gdp. look at japan, china, india, all of these large and small will drop huge income
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boosts and benefits across the economy. we have had a tremendous amount of investment in our energy sector. >> are we going to see double-digit returns in the u.s.? >> we are looking for a 9% global return. the u.s. can produce something with our% return markets at a steady valuation. it is an important part of returns. into thise are late recovery cycle in the financial markets. more than halfway through a global economic recovery. this is not a below point. >> i want to show you the chart tom keene got me. tom keene gets out of bed for an oil chart. the question is are you
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concerned this is going to translate into contagion in the large -- contagion in the broader market? >> it is all back to bed. >> you have to look at this as the dividing line of performance. for consumers this is not the largest part of your budget. it's not likely to be that sort of contagion. we could have sovereign defaults over this oil price drop. >> we are watching wrubel. -- it is not the ruvell anymore. ruble anymore.
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does annuity know how it is to nominated? the point is you are going to look for everything that is going to go wrong area it is a wider dispersion of those things. >> is it going to be a good offset of what the fed is likely to do. and gives janet yellen company more freedom to say we are going to raise interest rates. >> it is a question of the next stimulus. we go on our merry ray -- merry way. about that.
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central banks will view this as a stimulus for the american economy, even though many of the positives we see in energy anduction, investment, employment are not negligible issues we are going to lose. >> what about the fifth -- the flipside? >> part of this whole thing is volatility is there now. there was no disagreement about the monetary policy outlook since mid-2011. the fact we can have an uncertain view of what the fed will do affects the four interest rates. >> last time you are on a few weeks back. at 12. was at 21, 22.looking or is theity back market like the global climate,
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where we are going to see massive storms? >> it is the range of volatility. checked -- in the options market the prices one and 35 probability. all the sorts of things will be expected. it is one of our themes for 2015. is very low and can hedge cost-effectively. , when are we going to be ready to go back into the oil rally. at >> at 45% incline oil has de-risked a great deal. in the 2015 report we pointed out in 1986 there was no global recession and the oil price fell 60%.
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at its the scope of the risk you can half. now we have taken a great deal out of that marketplace. in the northern hemisphere demand is stronger than cash stronger in the summer than it is the winter. it is possible oil could move up in the next six months. you.ank global chief strategist at citi private bank. the founder and ceo of just smart is explaining how he is bringing it to the private masses. we have new details on the massive study about single pilot planes.
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, apple is going to court today
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to appeal a ruling in a case. if apple loses it will have to pay $450 million. most of it to e-books hires. would you feel safe having just one pilot in the car pit of the plane you are on? a study at nasa looks at that study. being reason it is considered, a potential shortage of pilots. france plans to ban new purse lower cost service of the interior. the ministries concerned about training and background checks. company that of a calls itself the uber of private jets. that allowsle app users to book a private jets anywhere in the world. backlash, itrecent is growing pains that expands
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overseas. what does that mean for a company that tries to emulate its business model? sir gay, good to have you this morning. being a journalist you are always a little bit cynical. you are the newer of private jets. how is it going to work when you see uber running into a lot of growing pains? we are a mobile marketplace, so that is exactly what we do. and let consumers book a private jet from a private ad within a minute. torently it is connected 3000 airplanes worldwide. are givinged, we away 2500 free flights. >> why are you giving away free flights? , currently about 30% of all airplanes fly empty regardless.
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we are letting our members essentially benefit from that. their membership fee? >> currently at $7,000 per year. >> who is using the survey? >> in terms of our members? we have a lot of downloads. over 300,000 downloads. we have a demographic between ages 20 and 50. we are talking making over $1 million per year. to -- if they wanted to they could book their own private jet. why would they share a flight with someone else? >> you do not share with anybody. and took fulln ircraft.
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the membership essentially pays for itself. we had a couple of free flights. >> they have been booked to go somewhere. yourself? >>at exactly. -- lacked jetis is one we read about. closed down by some pretty big celebrities. it was losing $200,000 per month. what was their problem? model isbusiness sharing seats. we sell all aircraft. very similar to ride sharing apps that sell whole cars. sharing limits the a lot of people who would be
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doing this. >> there is an economic problem when you have one person on a flight that should be filling seven. >> there are competitors who are on the markets now. how are you different? we can show some of the other servicet do a similar like yours. how are they different from yours? >> nobody is giving away free flights. if you do look into the services, we provide an eighth of the completely online solutions. pay for it, you can communicate with a certified aviation expert through the app. none of those services do anything -- and do everything a-z.
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bring thiseople to industry to the digital world, as compared to uber as a taxi company. >> are you making any margins? balog we are similar to hell ride sharing apps structure their model. we take transaction fees from the air carriers and collect membership fees. >> what are your margins like? >> if it is a regular on demand flight, we take 10%. for our members we subsidize that act. we don't take margins for members. we are trying to democratize it a little more. >> thank you so much. just smart founder and ceo. which are getting hit hardest by
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falling prices?
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>> the following price of oil -- the falling price of oil has taken center stage. with enough crude by some accounts to exceed the reserve, saudi arabia is often the most critical in the future of the u.s. shale boom. you visited parts of western texas and to look to first hand at it whether or not there is this destruction you are seeing from the falling prices. >> the boom and bust cycle. this is what everybody in midland texas is afraid of. oil production is a relatively new thing brought on by all of the new technology that has been able to extract crude from shale.
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ityou go to shale company -- shale country, it is booming. most of these are big, petroleum companies like chevron. or they are independent drillers --t have raised monday raised money and are still spending it. -- drilling towers, drilling pads. water is so essential to fracking. drive these trucks that can make upwards to $150,000 per year. see the evidence of the $2 billion per month being spent on oil drilling. half the city seems to have been put up in the last five years. we are talking condominiums and townhouses. a new headquarters there.
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up until september somebody was planning this connecticut development company was planning to spend $350 million to build an office in texas. that was canceled in september. >> what about to now with oil prices crashing? remains persistently low -- persistently below $65. are higher than $65 per barrel. midland texas is looking again at what happened in the 1980's. you can still see evidence of the last bust. abandon office towers downtown,
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the images are pretty striking. broken glass, one office building had a couple of inches of dust, shattered glass all over the place. >> it is all mixed in between the new buildings. >> it is like the stages of the roman empire, where the next building was built on the ruins of the last one. terraceserraces and and terraces, and then you go into the ground of centuries of development. them -- parts of the country have lived through it before. in the balkans it will be a random new thing. chad brown stain, and energy investor, will be talking to us about opportunities he sees. on "in does it for today ."e loop
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how to fight the fast food price in rising competition. we are joined for an exclusive interview.
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>> 56 past the hour, which means bloomberg television is on the markets. let's get you caught up with stocks that are currently trading.
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this is after industrial production for november rose the most since may 2010. this is after the selloff from last week. oil fighting from a five-year low. currently at 56 for crude. is speculation the fed will raise interest rates. they will kick off their two-day meeting tomorrow. rising interest rates means a different story for gold. investors usually pay off only through price gains. for more on the markets and why investors should be watching out this week i am joined by michael reagan. big event for this week? of course it is the fed. >> the fed is the big issue for a lot of people wondering if the
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considerable time phrase in their statement is going to survive. some believed removed by period. oil is tracking inflation expectations lower and really bringing up concerns about the local economy. -- the global economy. anyone figuring -- many if the fed will retain that language the new york times economy for economy columnists wonder if i will raise rates at all. family are trying to anticipate what the fed is going to do and that is in the smart to look at the venice, the fixes of 78% in the last five days alone. is going to be the big story this weekend is having a tough time modeling that affect of oil. goldman sachs saying that every $10 drop in the price of oil
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should boost s&p 500 earnings by two dollars per share. that is something that bank of america said -- she said the market is leveraged toward capital spending. oil inieves that even the 70's could trim about three or four dollars off of the share. having abig names are hard time really determining a consensus about what the overall effect is for oil. perhaps explains why some days we are up, some days we are down. people can't quite put their finger on it. >> with the increasing demand for commodities, it paints the picture that the overseas markets are struggling. and that is creating more or less big bag picture we are seeing for the u.s. market. of thise beginning round of oil, everybody was putting into the supplies. production was highest in three decades.
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now you have the international energy agency cut there for or cast. you had opec cut their demand forecast. part of it, a big not just a supply -- a lot of different variables going on. >> so much going on in these markets. hopefully it will not be a repeat of last week. my thanks to you. my greg in there. we are back on the markets and 38 minutes -- in 30 minutes.
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>> live from bloomberg headquarters in new york, this ," with erikakers schatzker and stephanie ruhle. selltsmart agrees to itself for $8.3 billion. it is the biggest lbo of the year. plunging.ces are opec members are at odds with one another. is now the time to double down on energy? happensing over, what when the world of vintage champagne collides with hip-hop? we will take a look at jay-z. it's "market makers," here


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